Why Memorial Hermann invested in a $2.2B startup

Memorial Hermann Health System said it will increase its reach and support the shift to value-based care by investing in a $2.2 billion digital health startup.

The Houston-based health system was a new investor in a $126 million series D funding round May 2 for Transcarent, a company that provides a personalized digital health platform to employers and health plans. The funding increased the startup's valuation to over $2 billion.

"By building meaningful partnerships with local community healthcare providers, Transcarent is expanding opportunities for health systems to support national employers through innovative, value-based payment models," said Feby Abraham, PhD, chief strategy and innovations officer of Memorial Hermann Health System, in a statement. "Transcarent's platform empowers employer benefits programs, making it easy for employees to seek high-quality care from trusted local providers."

Transcarent CEO Glen Tullman stated that the company aims to provide customers "one platform — your mobile phone — for everything you want and need" in healthcare, including access to virtual visits, pharmacy services, weight health, cancer treatment and surgery care (via partnerships with top health systems). More than 4.3 million people have access to Transcarent through their employer or health plan.

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